Miércoles, 23 May, 2018

Fonterra lifts Farmgate Milk Price forecast

Fonterra has collected 12 million kilograms of milk solids during the first month of the new milking season Andy Jackson Fonterra has collected 12 million kilograms of milk solids during the first month of the new milking season
Malita Javier | 28 Julio, 2017, 09:04

Fonterra's Australian farm gate milk price is now A$5.50/kgMS.

That brings the total cash paid to $5.90, and the forecast closing range to between $5.90 and $6.20.

Australian dairy farmers supplying Fonterra have a reason to smile after the co-operative lifted its milk price by 20 cents, pushing the average amount paid to A$5.50/kg of milk solids (MS).

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Fonterra Australia managing director René Dedoncker said that improved market conditions and the strength of the Australian business supported the price increase.

"Since the start of this season our milk pool has grown, and our assets are nearing optimal capacity", said Dedoncker.

"Increasing numbers of consumers in our global markets prefer dairy for their everyday source of nutrition, and that is converting into strong demand particularly in consumer and foodservice products", says Mr Spierings.

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"The increased Farmgate Milk Price will be welcome news to farmers as they continue to invest in their businesses off the back of an improved 2016/2017 season, with the usual reminder to budget cautiously especially in the early part of the season".

Fonterra Australia warned, however, that the current rally in the Australian dollar was likely to influence the end-of-season milk price, albeit within the forecast range.

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